Final Results

Banco Bilbao Vizcaya Argentaria SA
31 January 2007

                                                                 Press Release
                                                                 31 January 2007


                             BBVA Results for 2006



            BBVA's net attributable profit rises 24.4% to €4.7 billion


  Earnings per share (EPS) rise 23.9% and dividends against 2006 earnings will
 increase 20%, in line with net attributable profit without non-recurrent items



BBVA has invested €3 billion to reinforce its position in the USA and Asia, two
                  strategic markets with high growth potential



The Group achieved its best results ever, supported by the increase in business
    volume and recurrent earnings, and with sharp improvements in all areas



-       Operating profit (without non-recurrent items) is up 22.5% to €8,360m,
with significant advances in all margins



-      Retail banking increased operating profit 14.4% and net attributable
profit rose 13.8% to €1,498m



-      Wholesale Businesses increased operating profit 30% and net attributable
profit is up 47% to €1,282m



-      Mexico & USA increase operating profit 40.3% and net attributable profit
goes up 29.6% to €1,775m



-      Operating profit in South America rises 35.0% and net attributable profit
gains 34.4% to €509m



 BBVA strengthens its position as one of the most profitable and most efficient
                  European banks with the best risk management



-      Return on equity (ROE) now stands at 37.6% (36.4% without non-recurrent
items), compared to 37% in 2005



-      The cost/income ratio improved from 46.7% to 44% (including depreciation)
and from 43.2% to 40.9% (without depreciation).



-      The group's non-performing loan ratio fell from 0.94% to 0.83% and
coverage increased from 252.5% to 272.8%



-      BBVA ended 2006 with core capital of 6.2% and a BIS ratio of 12%,
following the capital increase in November 2006



In 2006, BBVA achieved net attributable profit of €4,736m, an increase of 24.4%
compared to the previous year, thanks to a sharp increase in business volume and
recurrent earnings, and to widespread positive performance by all the Group's
business areas. Operating profit rose 22.5% to €8,360m (without Repsol capital
gains), with increases of around 16% in all margins. This demonstrates the
strength of recurrent items in the Group's income statement. BBVA also moved
ahead with its strategic programme of profitable growth, investing €3,071m in
the USA and Asia - two areas with considerable growth potential. By the end of
2006, BBVA had reinforced its competitive edge as one of the most profitable and
efficient banks, with the best risk management in Europe.



In 2006, the BBVA Group completed its best year yet, with record profits at
group level and in all business areas. Vigorous marketing by all business areas
resulted in significant growth in the volume of business, boosting recurrent
revenues, which are the basis of the increase in profit.



During the year, the bank generated net gains on non-recurrent items of €156m.
It booked additional profit of €1,157m from capital gains related to divestments
in Repsol, BNL and Banc Internacional d'Andorra. And this helped to offset the
non-recurrent charges it faced in fourth quarter (€544m for early retirements
and €457m due to new corporate tax rules). If the net amount of these
non-recurrent items (€156m) is excluded, attributable profit comes to €4,580m,
an increase of 20.3% year-on-year.



In 2006, BBVA made two important strategic moves. They were the purchase of
Texas Regional and State National in the United States, and the partnership with
the CITIC Group in China and other parts of Asia. These operations represent an
investment of €3,071m.



The bank thus moves ahead with its plan to combine high organic growth with
investments in markets with high potential, offering shareholders a high return
in a sustained and lasting manner.



It ended 2006 as the leading European bank in ROE, which now stands at 37.6%
(36.4% without non-recurrent items), compared to 37% in 2005. Furthermore, the
Group's earnings per share (EPS) rose 23.9%.



The strength of the Group and its positive results, allows the board to propose
an increase of 20% in total dividends against 2006 earnings, which would rise to
€0.637 per share. This increase is in line with the growth in the Group's
attributable profit without non-recurring items. Together, dividends plus the
rise in the share price, provided shareholders with a return of 25% in 2006.



Although BBVA invested €3,071m in 2006 in the USA and Asia, the non-recurrent
items mentioned above (the divestment of non-strategic holdings in Repsol, BNL y
Banc Internacional d'Andorra) brought in €2,962m, with net capital gains of
€1,157m.



By the end of 2006, the bank had improved its key performance indicators and its
competitive edge, maintaining its place at the forefront of European banks.



Apart from an ROE of 37.4%, it improved the cost/income ratio including
depreciation, from 46.7% to 44% (from 43.2% to 40.9% without depreciation).



The group's non-performing loan ratio also fell, from 0.94% to 0.83% and
coverage rose from 252.5% to 272.8%.



At year-end, core capital stood at 6.2% and the BIS ratio at 12%, following the
capital increase of €3,000m.



The highlights of the Group's performance and strategy in the fourth quarter and
the full year are summarised below:



-        The acquisition of Texas Regional Bancshares was concluded in November.
More recently (January 2007), State National Bank also became part of the BBVA
Group.



-        The Group took a decisive step in its Asia Plan with a strategic
partnership with Citic Group. This will entail an initial investment of €989m,
opening the mainland Chinese markets (through a 5% stake in China Citic Bank)
and the Hong Kong market (via a 15% stake in Citic International Financial
Holdings). The Group has also opened a representative office in Sydney and
obtained approval to open another in Mumbai.



-        In the fourth quarter of 2006, BBVA generated operating profit of
€2,274m, with a year-on-year increase of 21.1% (26.0% at constant exchange
rates). Net attributable profit came to €279m, affected by non-recurrent
provisions of €777m for early retirements (€544m after tax) and an additional
tax charge of €457m due to new rules that will reduce the effective tax rate in
future years. Excluding these charges, net attributable profit for the fourth
quarter comes to €1,280m, an increase of 18.7% compared to the same period in
2005 (an increase of 23.2% at constant exchange rates).



-        For the full year, net attributable profit rose 24.4% to €4,736m. This
led to a 23.9% rise in earnings per share (EPS), which increase to €1.39 per
share. Return on equity (ROE) was 37.6%. Excluding 156m of non-recurrent items
(those mentioned above in the fourth quarter and €1,157m of capital gains
associated with BNL, Repsol and Andorra in the second quarter), net attributable
profit comes to €4,580m, rising 20.3% over the €3,806m obtained in 2005. This
means earnings per share were €1.34 (up 19.8% from €1.12 in 2005) and ROE stands
at 36.4% (37.0% in 2005).



-        The growth in profit stems from the increase in operating profit. This
rose 22.5% year-on-year to €8,360m (without the Repsol capital gains). At
constant exchange rates, the increase is 23.2% and the trend is upwards in
recent quarters.



-        The strong performance of operating profit can be traced to growth in
all revenue streams. Net interest income rose 16.2% on higher business volume
and the improvement in spreads. Net income from fees and insurance was up 12.6%
and net trading income rose 19.2%.



-        Because of the above, ordinary revenues without non-recurring items
grew 16.5%, which was much higher than the 9.5% increase in operating expenses
(including depreciation). This further improved the cost/income ratio to 44.0%
(without Repsol capital gains), compared to 46.7% a year earlier.



-        The substantial growth in lending to customers did not affect the high
quality of the loan portfolio (the NPL ratio improved to 0.83% at year-end,
compared to 0.94% at 31-Dec-05). However, it led to hefty generic loan-loss
provisions, which increased coverage to 272.8% (252.5% a year earlier). The
total amount of coverage funds now stands at €4,952m, compared to €3,967m at
31-Dec-05.



-        In a move to strengthen equity and to finance the Group's growth while
maintaining appropriate levels of capital adequacy, BBVA increased its capital
by €3 billion on 27th November by means of an accelerated bookbuilding procedure
with institutional investors, at €18.62 per share. As a result, at year-end the
Group's core capital stands at 6.2% (6.0% at 30-Sep-06 and 5.6% at 31-Dec-05),
Tier I capital is 7.8% and the BIS ratio 12.0%.



-        On 10th January the group paid a third interim dividend of €0.132 per
share against 2006 results. This was the same amount as the July and October
dividends and 15% higher than the dividends paid a year earlier.



-        All Group business areas reported record profits in 2006, based on the
growth of recurrent earnings. In all cases, this exceeded the increase in
expenses and thus generated widespread improvements in efficiency and
substantial rises in operating profit.



-        In Retail Banking in Spain and Portugal, lending was up 18.3% (with
contributions from all main types) and customer funds rose 9.3%. These
increases, together with the improvement in spreads, helped net interest income
to grow 9.2%. Net income from fees and insurance were up 11.2% and expenses
remained under control. Therefore, operating profit grew 14.4% and net
attributable profit rose 13.8% to €1,498m.



-        The Wholesale Business area demonstrated its ability to generate
recurrent earnings. Ordinary revenues grew progressively during the year,
accumulating an increase of 26.1% by year-end. This carried over to operating
profit (up 30.0%) and led to net attributable profit of €1,282m (up 47.0%).



-        In Mexico and the United States, the dominant factor behind the
increase in revenues was net interest income. At constant exchange rates, this
grew 33.3%, helped by sharp increases in lending and customer funds (up 40.6%
and 24.5%, respectively, in local currencies). The improvement in customer
spreads also contributed. After adding net income from fees and insurance (up
18.8%) and deducting expenses (which rose at a slower pace), operating profit
grew 41.7%. This was sufficient to offset higher provisions required by the
increase in lending and therefore net attributable profit came to €1,775m (up
30.8% at constant exchange rates and 29.6% at current rates).



-        South America maintained the trend of previous quarters with strong
year-on-year growth in all the main revenue streams. At constant exchange rates,
net interest income rose 28.4% (boosted by a 28.8% increase in lending and 21.0%
in customer funds). Net income from fees and insurance rose 17.2% and net
trading income jumped 85.5%. Operating profit increased 37.4% and net
attributable profit grew 37.0% to €509m (34.4% at current exchange rates).



-        In December, the Group adopted a new management structure designed to
foster growth and the current profound process of transformation and innovation,
moving towards the creation of a large global entity.


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